I recently opened a Roth IRA and am wondering if this is the only investment tool available for after-tax contributions? I want to make more investments but have already paid income taxes on the funds I want to use without incurring a back-end tax hit

3 comments so far...

efflandt Said on February 21st, 2010 at 4:24 pm:

Contributions can be withdrawn from a Roth IRA at any time with no tax (already taxed) or penalties. That and gains will never be taxed as long as you wait until they are “qualified”, But up to $10,000 of unqualified gains can be used to buy, build, or modify your first home without penalty (but those gains would be taxed).

So there should be no back end tax from a Roth IRA unless you draw more than your contributions out too soon, or the government totally does away with the income tax system for a national sales (consumption) tax instead.

newjerseyguy Said on February 21st, 2010 at 4:37 pm:

If you mean you want to invest for retirement outside of an IRA, consider “tax-managed” mutual funds or muni bonds.